Hammer Complete Guide
What is Hammer?
The Hammer is a single-candlestick bullish reversal pattern that forms at the bottom of a downtrend. It is characterized by a small real body near the top of the candle's range and a long lower shadow at least twice the length of the real body. There should be little or no upper shadow. The color of the body (bullish or bearish) is less important than the shape, though a bullish (green/white) body is considered slightly more favorable. The long lower shadow indicates that sellers pushed prices significantly lower during the session, but buyers stepped in and drove the price back up near the open, signaling potential exhaustion of selling pressure. Confirmation should come from a bullish candle on the following session. According to Nison, the Hammer is one of the most frequently occurring and reliable single-candle reversal signals.
Identification Rules
- Small real body located at or near the upper end of the trading range
- Long lower shadow at least 2x the height of the real body
- Little or no upper shadow (ideally none)
- Must appear after a meaningful decline or downtrend
Historical Win Rate Statistics
US
| Total Occurrences | 9 |
| T+5 Win Rate | 44.4% |
| T+20 Win Rate | 55.6% |
| T+20 Avg Return | 1.47% |
Recent Cases
| Symbol | Date | T+20 Return |
|---|---|---|
| AMZN | 2025-11-19 | 2.35% |
| AAGH | 2025-06-09 | -50.00% |
| AAGC | 2025-06-06 | 0.00% |
| ACHR-WT | 2025-06-05 | 13.83% |
| ABVN | 2025-05-30 | 0.00% |
| ABR | 2025-05-22 | 17.71% |
| ACLLF | 2025-05-13 | 5.18% |
| AAGC | 2025-05-12 | -14.29% |
| ACHFF | 2025-05-12 | 6.86% |
| ACCR | 2025-05-09 | 13.64% |
Related Patterns
References
- Steve Nison (2001). Japanese Candlestick Charting Techniques.
- Thomas N. Bulkowski (2008). Encyclopedia of Candlestick Charts.
FAQ
What is the difference between a Hammer and a Hanging Man?
They are identical in shape. The difference is context: a Hammer appears at the bottom of a downtrend (bullish reversal), while a Hanging Man appears at the top of an uptrend (bearish reversal).
Does the color of the Hammer body matter?
A bullish (green/white) body is slightly more favorable, but both colors are valid. The shape and context (occurring after a downtrend) are more important than the body color.
How long should the lower shadow be?
The lower shadow should be at least twice the length of the real body. Some strict definitions require 2.5x or 3x for stronger signals.
Do I need confirmation after seeing a Hammer?
Yes. A bullish confirmation candle on the next session (closing above the Hammer's body) significantly increases reliability.
What is the success rate of the Hammer pattern?
According to Bulkowski, Hammer patterns in a downtrend act as bullish reversals approximately 60% of the time when properly confirmed.
More Analysis
Parts of this page (FAQ, introductions) are AI-assisted. Core data and statistics are algorithmically computed. All pattern definitions are human-reviewed.
إخلاء المسؤولية: تستند هذه الصفحة إلى بيانات السوق العامة والتحليل الفني الخوارزمي. لا تشكل نصيحة استثمارية.
Data source: EODHD · © 2026 KlineVision AI